New Zealand gov't unveils package to tackle child poverty

The New Zealand government Thursday said it will tackle child poverty, affecting an estimated 250,000 children, with a package valued at 790 million NZ dollars (578.79 million U.S. dollars) in the annual Budget.

The package included increased work obligations for single parents on welfare, more childcare support for low-income families, a rise of 25 NZ dollars (18 U.S. dollars) a week in benefit rates for families with children, and an increase in tax rebates to low- income families not on a benefit, Finance Minister Bill English said in a published speech to Parliament.

"This package strikes a balance that offers more support to low- income families with children, while ensuring there remains a strong incentive for parents to move from welfare to work," English said.

"Moving to paid work is the best way to lift more families out of poverty, while an increase in benefit rates will help address our concern about children whose family's resources have been falling behind other households."

Two-thirds of children in more severe hardship had a parent on welfare, and nine out of 10 of those were sole parents.

Prime Minister John Key, who promised to focus on child poverty after winning a third term in the election in September last year, said the measures taking effect from April 1 next year would allow parents to provide better for their children.

"Billions of dollars are already invested every year in supporting low-income families and we're also addressing the long- term drivers of material hardship like poor educational achievement," Key said in a statement.

"But there is still a group of children who, through no fault of their own, are in families where there is considerable hardship. We are firmly focused on helping these children out of the cycle of hardship." Endi